What happens to stocks if AI loses momentum?
BOSTON - CarGurus , Inc. (NASDAQ:CARG) reported fourth quarter earnings that beat expectations, but shares plunged 12.4% in after-hours trading Thursday due to a revenue miss and weak guidance for the first quarter.
The online automotive marketplace posted adjusted earnings per share of $0.55, surpassing analyst estimates of $0.52. However, revenue of $228.5 million fell short of the $231.85 million consensus.
For the fourth quarter, CarGurus’ Marketplace revenue grew 15% year-over-year to $210.2 million. International revenue increased 26% compared to the same period last year.
Looking ahead, the company provided disappointing guidance for the first quarter of 2025. CarGurus expects revenue between $216 million and $236 million, below analyst projections of $239.1 million. The company forecast adjusted earnings per share in the range of $0.41 to $0.47, compared to the $0.42 consensus estimate.
"We delivered exceptional results in 2024, with sustained revenue acceleration and significant margin expansion across geographies," said Jason Trevisan, Chief Executive Officer at CarGurus. However, the weak outlook overshadowed the positive commentary.
The company ended the quarter with 32,010 total paying dealers, up 3% year-over-year. U.S. quarterly average revenue per subscribing dealer rose 12% to $7,337.
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